EU Delays Retaliatory Tariffs on U.S. Goods

The European Union announced recently that it will delay retaliatory tariffs on imports from the U.S. in hopes of reaching a negotiated solution.

Effective March 12 the U.S. began imposing 25 percent tariffs on imports of steel and aluminum and derivative products from all countries. The EU responded with a two-step plan of retaliation, the first of which was to be reinstating tariffs on €4.5 billion worth of imports from the U.S. as of April 1. These tariffs, which had been suspended during President Trump’s first term, cover products ranging from boats to bourbon to motorbikes (see here and here for affected goods).

In the second step the EU intends to impose in mid-April tariffs on another €18 billion worth of imports from the U.S. Proposed target products (a full list can be downloaded here) include industrial goods such as steel and aluminum products, textiles, leather goods, home appliances, house tools, plastics, and wood products as well as agricultural products such as poultry, beef, seafood, nuts, eggs, dairy, sugar, and vegetables.

However, EU officials said March 20 that Brussels now plans to impose both sets of retaliatory tariffs at the same time in mid-April (no specific date was given). The delay will allow time for the U.S. and the EU to hold negotiations on how to resolve the underlying dispute without a further escalation of tariffs (talks that appear to be ongoing). It will also give the EU time to evaluate the reciprocal tariffs President Trump has threatened to assess beginning April 2 and adjust its measures accordingly.

For more information on these tariffs please check this page or contact ST&R at tariffs@strtrade.com.